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Tds on sale of property


Tds on sale of property is levied 1% of all the property where the total transaction value is more than 50 lakhs. Tds on property has been explained in details of article.

Rate of TDS on sale of  property;

TDS on sale of property is 1% of the property value is more than 50 lakhs. Tds is required to deduct
for all the transaction after 1st july 2013 if the property of transaction value is more than rs. 50 lakhs. If the seller in not- resident in india he is an NRI then the rate of tds will change.

Amount on which  the Tds is to be deducted ;

Tds @ 1% is to be deducted on all property transaction which are above 50 lakhs. TDS is deducted on all type of property transaction irrespective the property is consideration flat or building or vacant. tds is deducted of all type of property transaction except agricultural land.

Tax deduct on property to be deposited with govt;

As per the income tax act any tds is deduct shall be deposited with govt. on before the specified due date of deposit of tds. Any person deduct in tds shall also the apply section 203A. Tds is deduct by the buyer at the time of making the payment of seller has to be deposited within the period of 30 days from the end of month.

Tds on purchase of property from NRI:

Tds on purchase of property in case of long term capital gain 20% and applicable tds rate surcharge less than 50 lakhs is 20.8% and 50 lakhs to 1 crore is 22.88% and more than 1 crore 23.92%.
In the case of NRI pan is mandatory and resident pan is mandatory.

Procedure for deposit of tds  on property  with govt;

Buyer of property is required to deduct tds on property from the purchase price of the property deposit this tds with the income tax department. form 26qb is required to furnish mentioned all details ;
pan number of buyer, address of buyer , pan number of seller, address of seller, address of property transferred , date of payment, amount paid, date of agreement, residential status.

More than 1 buyer or 1 seller;

In case of more than 1 buyer  and  2 seller- 2 forms  have to be submitted,

and in this case 2 buyer  and 2 seller-  4 forms have to be submitted  for their respective property  share.

Pan card of seller and buyer should be mandatory in form 26QB regarding the tds on property on sale transaction. In the case of seller does not have pan card then tds is to be deduct  in 20% of total transaction value. the provision are applicable  for the tds  purchase  of property only.  These provision wont be applicable  on payment made as  rent of property. the provision of section 194I   are applicable of tds on rent in case tds is deduct in 10%.

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